New Caledonia Uses Tax Break to Attract Foreign Investment

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The following is an advisory by Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas). French territory, New Caledonia (East of Australia in the Coral Sea) is using a tax break to attract foreign companies. The country recently passed legislation to grant a 100% tax break for the first 15 years of production, and a 50 percent tax break for the following five years, to foreign companies investing in new business ventures.

New Caledonia, the fourth largest producer of mined nickel after Russia, Canada and Australia plus the largest producer of ferronickel, understands the long-term economic benefits of multi-million dollar projects. Industrialinfo.com is currently tracking nickel projects in New Caledonia valued at over $4 billion.

Approximately 80 percent of nickel production in the world is used in alloys production, and approximately 60 percent nickel alloy is used in the production of stainless steel. Stainless steels that contain nickel are often used in the chemical and consumer industries. Nickel, when added to a group of iron-based alloys containing chromium, carbon and other elements increases corrosion resistance and strength.